Relationship between Covid-19 pandemic and firm’s performance towards unemployment across countries

Abstract

As a result of the consequences of the Covid-19 pandemic, stock market players issued their quick response on how coronavirus has affected the performance of firms whereby most of the affected sectors are airlines, tourism, hotels, transportation and many more. This has led to an increase in the unemployment rate worldwide. Considering this global issue, this study was aimed at investigating the relationship between unemployment with a number of confirmed cases of Covid-19 and firms’ performance as well as the controlling factors across seven (7) countries. Secondary data were utilized with the data obtained from Bloomberg and Worldometers website. The dataset for dependent as proxy by unemployment rate and explanatory variables proxies by COVID-19 and firm’s performance were then tested using multivariate regression approach. Finally, from the study, it is suggested that an increase in the number of Covid-19 cases will affect business performance as controlled by macroeconomics factors which lead to a significant positive relationship between the unemployment rates in all the countries of this study. This factor may affect the government’s decision to implement the Movement Control Order (MCO), for instance by the Malaysian Government. By Covid-19 vaccine development in the market nowadays, hopefully, the spread can be mitigated and firms’ performance can return to normalcy to avoid increasing rate of unemployment in the world.

Determinan Kinerja Usaha E-Commerce di Pulau Jawa Masa Pandemi Covid-19 Tahun 2020

“…Hal ini dimungkinkan jika kinerja perusahaan E-Commerce meningkat. Penelitian yang dilakukan oleh Saad (2021) menyatakan bahwa peningkatan jumlah kasus terdampak Covid-19 akan memengaruhi kinerja usaha yang dikendalikan oleh faktor ekonomi makro yang mengarah pada hubungan positif yang signifikan antara tingkat pengangguran di semua negara dalam penelitiannya. Oleh karena itu, perlu dilakukan peningkatan kinerja usaha, khususnya usaha E-Commerce karena memiliki peluang yang lebih besar di era digital saat ini.…”

Does the Covid-19 pandemic affect the financial performance of corporations? Empirical evidence from Indonesia

“…Firm efficiency and profitability can be strengthened only with a hygienic environment and social distancing policies to reduce the impact of the Covid-19 pandemic (Imran et al, 2021). Other research in Malaysia concluded that the increase in Covid-19 cases and the Movement Control Order (MCO) policy would directly impact decreasing business performance and increasing unemployment (Saad, 2021). Similar research in Malaysia concluded that the consumer goods industry experienced an increase in liquidity ratios, profitability, and activity while the property, real estate and construction, finance, trade, services, and investment industry decreased their liquidity and profitability (Khatib & Nour, 2021).…”